Market knowledge

Prize promotion rules in Europe, market by market

The same promotion can be routine in one market and a licensing offence in the next. This overview summarises, market by market, how prize draws, instant wins and purchase-linked promotions are treated, as of mid-2026, all information without warranty. It is orientation, not legal advice: every campaign we run is verified for its specific mechanics by the licensed local lawyers of our network before launch.

28 markets summarised, 12 with a full profile. 41 covered.

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28 summarised, 12 full profiles, 41 covered

  • Orange markets have a published rule summary. Click one.
  • Dimmed markets are covered operationally; detailed rules on request.
  • Everything on this page: status mid-2026, verified per campaign before launch.

At a glance

These are all 41 markets we operate in: the 28 below carry detailed rules; a further 13 are in the second table lower down.

MarketPurchase-tied prize drawPermit / registrationPrize taxationWatch out
PolandRegulated as a promotional lottery unless skill-based or free entry offeredPermit from the regional tax administration (KAS); filing takes weeks, budget for it in the timelineFlat tax above set exemption thresholdsUnlicensed lotteries risk substantial fines; 2025 reforms added electronic registration
LithuaniaAllowed, including purchase-linked draws; a purchase at normal price is not a stake, so no free-entry route is requiredGaming Control Authority approval for large lotteriesModest promotional prizes generally exempt up to a ceiling; above that, taxable2025 reforms tightened gambling-adjacent advertising
EstoniaAllowed without a free-entry route; small games run permit-freeRegistration with the Tax and Customs Board above a set prize-fund thresholdGambling tax on the prize fund above the thresholdDigital skill games: individual prizes capped
GermanyPermitted, including purchase-linked draws, under UWG transparency rules; no free-entry route requiredNo permit, registration or notaryNo prize taxes; winnings are generally tax-free for private individualsAn active cease-and-desist environment (Abmahnungen); unclear terms or badly structured marketing consent can trigger injunctions mid-campaign
FrancePromotional prize draws (jeux-concours) are permitted and may be purchase-linked; lawful as long as not an unfair commercial practice. The mandatory free-entry route was dropped in 2014No permit; the règlement is filed; DGCCRF oversight, plus CNIL and ARPP obligationsHigh-value prizes can trigger organiser obligationsBe transparent about the random draw; no misleading or aggressive practices; heavy fines for unfair practices
SpainAllowed, including purchase-linked draws; no free-entry route requiredNo licence or prior notification for advertising prize draws; a gaming-activities tax applies insteadWithholding above a threshold; in-kind prizes shift the winner tax to the promoterMarket practice: legal bases and final draw notarially handled
ItalyPrize competitions run under DPR 430/2001, the heaviest regime in Europe; purchase-linked mechanics are standard but fully regulatedMinistry filing ahead of launch; bank guarantee for the full prize value; draw before a notary or Chamber of Commerce officialHigh combined burden in practice (prize withholding plus substitute tax on goods)Cash prizes prohibited; data on servers in Italy; foreign promoters use a locally mandated representative
United KingdomPaid-entry chance draws are illegal lotteries without a licence; free-entry route legalisesNo permit for CAP-Code-compliant promotionsWinnings generally untaxed for individuals; promoter accounts for VAT on goods prizesPost-White-Paper reforms are closing gaps around online prize draws
IrelandAllowed with free-entry routeDistrict court permit for lotteries; low-value marketing campaigns simplified since 2019Non-cash prizes may be taxable for winnersReform may bring licensing for online chance competitions
AustriaSensitive: chance plus a stake can be gambling; a free-entry route is strongly advisedGenerally none with a clean free-entry routeA fee question can arise for prize competitions (Gebührengesetz); check itFree entry as standard
BelgiumPure games of chance are problematic; a skill element (a tiebreak question) is usually requiredNo general licence for advertising contestsConfirmed per campaignA skill question is standard practice
BulgariaPromotional games under exemptions in the gambling actConfirmed per campaign, depending on the mechanicTax on prizes above an exemptionCheck the exemption framework
CroatiaPrize games (nagradna igra)Finance-ministry approval plus a fee (a share goes to the Red Cross); rules publishedConfirmed per campaignBudget for approval and fee
CzechiaConsumer contests (spotřebitelská soutěž): a normal-price purchase is not a stake under the Gambling Act (186/2016), so purchase-linked chance is allowed; it is gambling only with an extra stake beyond the normal priceNone as long as it is not gamblingWinnings may be taxableRules relaxed versus the old lottery act; no free-entry route required
DenmarkChance plus purchase can require authorisation; a skill element or free-entry route avoids itAuthorisation possible; marketing law appliesWinnings levy (gevinstafgift) on certain prizes, borne by the organiserSkill or free entry is the route
FinlandPurchase-required, customers-only promotional games are permitted (since 2011); not lotteries as long as the product is not priced higher for participantsNo permit; clear terms required (Consumer Protection Act)Confirmed per campaignNo free-entry route required; minors cannot be targeted with purchase-required promotions
HungaryPromotional prize games (nyereményjáték)Since 1 Jan 2023 outside the Gambling Act: no notification, registration or notary; a licence (SZTFH) is only needed if the game qualifies as gambling (stake + prize + chance)Personal income tax (SZJA) on prizes, borne by the organiser2023 reform; the regulator is the SZTFH, not the tax authority
LatviaGoods and promotional lotteries are allowedApproval from the lotteries and gambling supervisor plus a feeConfirmed per campaignApproval and fee apply
MaltaTrade-promotion lotteries are permittedMGA: permit or notification duty for commercial communications and trade promotionsConfirmed per campaignCheck the permit requirement
NetherlandsSmall promotional games of chance are allowed under the Gedragscode Promotionele KansspelenNo licence, but a code of conduct sets limits on frequency and valueGaming tax (kansspelbelasting) on prizes above an exemption, remitted by the organiserStay within the code limits
NorwayLotteries are restricted (monopoly); advertising contests without a purchase requirement; skill or free-entry routeNone with free participationConfirmed per campaignNo purchase requirement
PortugalPromotional draws (sorteios) are allowedAuthorisation from the competent municipality (câmara municipal): application, the regulation and a municipal fee; requirements vary by council (not the SRIJ, which regulates gambling)Stamp duty (Imposto do Selo) on prizesMunicipal competence means requirements are fragmented; mind the stamp duty
RomaniaPromotional campaigns (campanie promotionala); no purchase requirement for certain typesOfficial rules, notarisedWithholding tax on prizes above an exemptionNotarised rules plus tax
SerbiaPrize games (nagradna igra)Finance-ministry approval plus a fee; published rulesConfirmed per campaignApproval required; cashback via SEPA since 2025
SlovakiaPromotional lottery (propagacna sutaz)Notification or registration may applyTax on prizesCheck the notification requirement
SloveniaPrize games (nagradna igra)Approval or notificationTax appliesCheck the approval path
SwedenLotteries require a licence (Spelinspektionen); a skill contest (pristävling) or a free-entry route is allowedNone with a skill or free-entry routeNo specific prize tax notedThe skill-versus-chance line is decisive
SwitzerlandShort-term sales-promotion games are exempt from the Gambling Act (BGS Art. 1(2)(d), since 2019) when entry is only via purchase at market-conforming prices; no free-entry route requiredNo permit when the exemption appliesWithholding tax can apply to higher cash winningsNot a blank cheque: fair-trading law (UWG) still applies; the exemption is for short campaigns

Status: mid-2026. Rules and thresholds change; specifics are confirmed per campaign by licensed local counsel before launch.

Market by market
Poland · Strictest of the twelve

Chance plus purchase equals a licensed lottery

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Poland's Gambling Act treats any promotion that combines a chance outcome with a purchase condition as a promotional lottery requiring a prior permit from the regional tax administration, and running one unlicensed risks substantial fines. Marketers stay outside the regime with skill-based mechanics or a genuine free-entry route, and prizes carry a flat tax above set exemption thresholds. The regulatory framework is public. What isn't is the sequencing that keeps the permit window inside the campaign timeline instead of derailing it, which is the part we handle. Status: mid-2026. The applicable requirements are re-checked before each campaign.

Lithuania · Liberalised market

A purchase at normal price is not a stake

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A purchase of the product at its normal price is not treated as a stake, so a purchase-linked chance draw is lawful without a free-entry route. Large lotteries need Gaming Control Authority approval, and modest promotional prizes are generally treated as de minimis up to a set ceiling before becoming taxable income. Recent reforms tightened anything resembling gambling, including advertising, so the mechanic and terms are set with that boundary in mind. Status: mid-2026. The applicable requirements are re-checked before each campaign.

Estonia · Threshold market

Small stays simple, by design

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Estonia separates commercial lotteries by prize-fund value: below a set threshold the registration requirements of the Gambling Act do not apply; above it, the lottery is registered with the Tax and Customs Board before launch and the prize fund carries gambling tax, up to an overall cap measured at market value. For modest FMCG promotions this makes Estonia one of the most predictable markets, provided the thresholds are respected and Estonian-language terms are published. The exact figures, and which side of them a promotion should sit, are what we assess before each launch. Status: mid-2026. The applicable requirements are re-checked before each campaign.

Germany · The cease-and-desist market

Nobody checks upfront, competitors check afterwards

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No permit, no registration, no notary, and purchase-linked draws are permitted, which makes Germany look like the easiest market on this page. Read it as the least forgiving instead: because nothing is checked before launch, mistakes can surface later as legal disputes or competitor challenges (Abmahnungen). Unclear participation conditions, transparency gaps or badly structured marketing consent can trigger injunctions in the middle of a running campaign. The protection is craft: precise Teilnahmebedingungen, a clean consent architecture, and a witnessed, documented draw protocol, because here the paperwork is not a filing, it is the defence. Status: mid-2026. The applicable requirements are re-checked before each campaign.

France · Fairness-test market

Permitted if it is not an unfair practice

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Since the 2014 reform, promotional prize draws (loteries publicitaires / jeux-concours) are permitted and may be reserved to purchasers; they are lawful as long as they are not an unfair commercial practice (pratique commerciale déloyale). The old mandatory free-entry route is no longer the general rule. What matters is the fairness test: transparency about the random-draw mechanism, no misleading or aggressive practices, with heavy fines when a practice is unfair. DGCCRF oversees promotional practice, CNIL the data side, ARPP advertising. The separate gambling-lottery regime under the Code de la sécurité intérieure is not this. Status: mid-2026. The applicable requirements are re-checked before each campaign.

Spain · Registration market

No permit, but the tax office collects twice

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Advertising prize draws are explicitly excluded from the gaming-licence regime: no licence, no authorisation, no prior notification to the DGOJ. The price of that freedom is fiscal, and it lands in two places: a gaming-activities tax on the market value of the prizes, self-assessed by the organiser, plus withholding on higher-value prizes, which for in-kind prizes ends up carried by the promoter. Market practice adds notarial steps around the legal bases and the draw. DGOJ guards the gambling boundary, AEPD the data side. The exact rates and how the in-kind burden is calculated are what we model per campaign. Status: mid-2026. The applicable requirements are re-checked before each campaign.

Italy · The heaviest regime

Filed, guaranteed, drawn before an official

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Prize competitions run under DPR 430/2001, the most demanding regime on this page: the campaign is filed with the ministry ahead of launch, a bank guarantee covering the full prize value is posted, and the draw takes place in Italy before a notary or a Chamber of Commerce official. Cash prizes are prohibited, participation data sits on or is mirrored to servers in Italy, and unclaimed prizes are donated to charity. Foreign promoters operate through a locally mandated representative. The combined tax burden is high but entirely plannable, which is exactly the point. The filing sequence, guarantee timing and mandate structure are what turn "heavy" into "handled". Status: mid-2026. The applicable requirements are re-checked before each campaign.

United Kingdom · Code market

The CAP Code replaces the permit

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Paid-entry games of chance are illegal lotteries without a Gambling Commission licence; a free-entry route or skill mechanic keeps promotions legal without any permit, governed by the CAP Code (Committee of Advertising Practice) with published terms, auditable draws and #Ad disclosure. Winnings are generally untaxed for individuals; the promoter accounts to HMRC for VAT on goods given as prizes. Reforms following the 2023 Gambling White Paper are closing gaps around online prize draws and high-value skill competitions. Status: mid-2026. The applicable requirements are re-checked before each campaign.

Ireland · Reform market

Simplified since 2019, tightening ahead

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The Gaming and Lotteries (Amendment) Act 2019 simplified low-value marketing campaigns; purchase-linked chance draws still need a free-entry route, and genuine lotteries a district court permit. Non-cash prizes can be taxable for winners, and VAT can apply to prize goods. Gambling reform under discussion may bring new licensing obligations for online chance competitions, worth watching for always-on mechanics. Status: mid-2026. The applicable requirements are re-checked before each campaign.

Switzerland · Exempt-promotion market

Purchase-only promotions sit outside the gambling law

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Since 2019 the Gambling Act (BGS) expressly exempts short-term sales-promotion games where entry is only through buying a product or service at market-conforming prices and there is no risk of excessive gambling (Art. 1(2)(d)). A free-entry route is not required, which reverses the pre-2019 position. The exemption is not a blank cheque: the promotion still has to satisfy fair-trading law (UWG), and it is meant for short campaigns. Confirming that a mechanic sits inside the exemption is the part we handle. Status: mid-2026. The applicable requirements are re-checked before each campaign.

Netherlands · Code-of-conduct market

A code, not a licence, sets the limits

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Small promotional games of chance are permitted under the Gedragscode Promotionele Kansspelen, a code of conduct rather than a licensing regime, which caps how often and how richly they can run. Gaming tax (kansspelbelasting) applies to prizes above an exemption and is remitted by the organiser. That makes the Netherlands a predictable market as long as a campaign stays inside the code frequency and value limits, which is exactly what we check before launch. Status: mid-2026. The applicable requirements are re-checked before each campaign.

Sweden · Skill-or-free market

Skill and chance sit on opposite sides of a line

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Lotteries need a licence from Spelinspektionen, but a genuine skill contest (pristävling) or a free-entry route keeps a promotion outside that regime. The whole question is where a mechanic falls on the skill-versus-chance line, because that decides whether a licence is needed at all. Getting a campaign cleanly on the right side of that line is the work, and it is the part we handle before launch. Status: mid-2026. The applicable requirements are re-checked before each campaign.

How we use this

This page is the map. The Guarantee is the vehicle.

Inside FIBRE®, this market knowledge becomes FIBRE Guarantee: terms drafted per market by the licensed lawyers of our network, filings submitted, prize taxation and winner obligations organised before launch. To our knowledge, no campaign we have coordinated has been prohibited by a regulator or court in 16 years. Ask us about your market list.

FAQ

Common questions about prize promotions in Europe

Which European markets require a free-entry route for prize draws?

It is the exception, not the rule. In much of Europe a purchase-linked chance draw is lawful without a free-entry route. A genuine free-entry route or a skill element is needed mainly in Sweden, Denmark, Norway, Belgium, Austria and Luxembourg, and some markets require a permit instead. The per-market position is set out in the table above, which governs. The United Kingdom and Ireland treat a free-entry route as one lawful path alongside skill-based or low-value routes (status: mid-2026).

Can you pay cashback to bank accounts across Europe?

In most markets, yes. Cashback is a purchase refund with no randomly chosen winner, so it is a sales rebate rather than gambling and is broadly permitted. The practical limit is the payment rail: bank payouts run across the SEPA area, which as of mid-2026 covers the EU plus the United Kingdom, Switzerland and, newly since 2025, Albania, Moldova, Montenegro, North Macedonia and Serbia. Only Bosnia and Herzegovina, Kosovo, Ukraine and Turkey remain outside SEPA, where an alternative rail or vouchers are used (status: mid-2026).

In which European markets are cash prizes not allowed for prize draws?

A few markets require non-cash prizes for draws with randomly chosen winners: Croatia, where the prize fund is in goods or services, Iceland, where prizes must be non-cash, and Turkey, where cash is reserved to the state lottery so prizes must be goods, services or vouchers. This applies to prizes won by chance, not to cashback, which is a guaranteed refund (status: mid-2026).

Do you need a permit to run a prize draw in the EU?

It depends on the market and the mechanic. Many markets need no permit for a purchase-linked draw, for example Germany, France, Spain and Finland. Others require a permit or a filing, notably Poland with a permit from the tax administration, Italy with a ministry filing plus a bank guarantee and a notary, and Croatia, Malta and North Macedonia. A skill-based mechanic often avoids the licensing regime entirely (status: mid-2026).

Do prize draws need a permit in the United Kingdom?

No. A free-entry route or a genuine skill element keeps a promotion outside the Gambling Act 2005, with no licence required; a paid-entry chance draw would be an illegal lottery. Promotions follow the CAP Code (Committee of Advertising Practice) with published terms and clear ad disclosure, and winnings are generally tax-free for individuals (status: mid-2026).

Do prize promotions need a licence in Ireland?

Advertising prize draws are allowed. Above certain prize values, additional requirements from gambling law apply. We check the relevant thresholds per campaign (status: mid-2026).

Are purchase-linked prize draws allowed in the Netherlands?

Allowed under the code of conduct for promotional games. Caps apply to the total prize value and to the number of draws per year; above these, further obligations apply. We check the relevant limits per campaign (status: mid-2026).

Do prize promotions need a free-entry route in Sweden?

In practice yes, or a skill element. Commercial lottery licences are not generally available to brands, so a purchase-linked pure-chance draw is treated as an unlicensed lottery; a genuine skill mechanic or an equal free-entry route keeps a promotion lawful (status: mid-2026).

Do prize draws need a free-entry route in Switzerland?

No, not necessarily. Since 2019, short-term sales-promotion games are excluded from the Money Gaming Act (Art. 1 para. 2 lit. d BGS) when participation is only through a purchase at normal market prices and the promotion is short; no free-entry route and no licence are required. Unfair-competition rules still apply (status: mid-2026).

Do prize draws need a free-entry route in Austria?

Restrictions apply to purchase-linked prize draws; depending on prize value and design, a free-entry or skill route is required. We check the relevant thresholds per campaign (status: mid-2026).

Do prize draws need a permit in Poland?

Purchase-tied chance draws are regulated as promotional lotteries in Poland and require a permit from the regional tax administration; skill-based mechanics or a genuine free-entry route keep a promotion outside the licensing regime. Unlicensed lotteries risk substantial fines (status: mid-2026).

Is a free-entry route required for prize promotions in France?

No. Purchase-linked prize draws (jeux-concours) are lawful in France without a free-entry route; the mandatory route was dropped in 2014. What remains prohibited is a paid-entry lottery in the gambling sense. Promotions must not amount to an unfair commercial practice, alongside DGCCRF, CNIL and ARPP obligations (status: mid-2026).

Do prize promotions need a licence in Spain?

No. Advertising prize draws are excluded from the Spanish gaming-licence regime, with no licence or prior notification to the DGOJ. The organiser instead owes a gaming-activities tax on the market value of the prizes, and higher-value prizes carry withholding (status: mid-2026).

What does Italy require for a prize promotion?

Under DPR 430/2001, prize competitions in Italy are filed with the ministry ahead of launch, a bank guarantee for the full prize value is posted, and the draw takes place in Italy before a notary or a Chamber of Commerce official. Cash prizes are prohibited, and foreign promoters operate through a locally mandated representative (status: mid-2026).

Do prize draws need a permit in Germany?

No. Germany requires no permit, registration or notary for prize promotions, and purchase-linked draws are permitted under the transparency rules of the UWG. The risk arrives after launch instead, as competitor cease-and-desist letters (Abmahnungen), so precise terms, clean consent and documented draws are the protection (status: mid-2026).

Note: This page is a general orientation, current as of mid-2026, and not legal advice. Rules, thresholds and enforcement practice change. Competence Alliance is not a law firm; campaign-specific legal advice is provided by the independent, licensed lawyers and law firms of our coordinated partner network, whose review of the specific mechanics precedes every launch.

The further 13 markets we cover

The markets above show the range in detail. Here are the remaining markets at a glance, summarised at a high level. As with everything on this page: without warranty, and verified per campaign before launch by the licensed lawyers of our network for the specific mechanics.

MarketRegime (high level)
AlbaniaApproval or notification; law evolving
Bosnia and HerzegovinaApproval; competence depends on the entity
CyprusSkill or free entry route
GreeceSkill or free entry route; not uniform
IcelandAuthorisation required; free entry route
KosovoFramework developing; clarify early
LiechtensteinFree entry route, aligned with Swiss practice
LuxembourgFree entry route; lightly codified
MoldovaAdvertising law; approval for certain activities
MontenegroApproval or notification
North MacedoniaApproval
TurkeyPermit from the national lottery authority (Milli Piyango); own, elaborate regime
UkraineAdvertising law; check current situation

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